The two companies have initiated the medication adherence project and announced plans to offer Onduo virtual diabetes program to Walgreens employees.

Walgreens Boots Alliance and Alphabet-owned Verily announced they will collaborate on multiple projects under a broad agreement aimed at improving health outcomes for patients with chronic conditions, while also lowering the cost of care. Walgreens will be a first-choice retail pharmacy development and commercialization partner to Verily, and the organizations have agreed to work on and explore ways to improve access to advanced healthcare technologies and solutions; said solutions may include sensors and software to help prevent, manage, screen and diagnose disease — with a shared goal of scaling deployment at Walgreens retail locations.

Initially, the two companies will work on a medication adherence pilot project that will deploy devices and other approaches designed to improve adherence. Walgreens together with Onduo, Verily's joint venture with Sanofi, will also launch a virtual diabetes solution to Walgreens employees and family members with Type 2 diabetes through the Walgreens employee health plan.

Onduo provides tools, coaching and remote access to specialty doctors to help people with diabetes to manage their condition anytime, anywhere. These initiatives are part of a broader strategic alliance designed to combine Verily's healthcare technology innovation with Walgreens corner store presence and trusted pharmacy services.

"We're focused on finding innovative ways to deliver better patient care at lower costs, and working with the right healthcare partners to help bring new services and solutions to our patients and customers," Stefano Pessina, CEO of Walgreens Boots Alliance, said in a statement. "The continued rise in chronic diseases today can be costly to patients as well as to our healthcare system. Working with Verily, we'll look at how we can best support integrated and value-based care to meet our patients' needs, as well as opportunities to address other chronic conditions over time."

Verily's CEO Andrew Conrad is also pleased with the deal, adding that his company is "well aligned with Walgreens."

"Medication adherence, which represents one of the most significant and costly barriers to improving patient outcomes, is an area that I am most excited to work on with a partner like Walgreens," he added.